Turkish lira hits record low against dollar over corruption scandal engulfing government

Jan 6, 2014
The Associated Press

ANKARA, Turkey – The Turkish national currency has fallen to a new low, a sign the government corruption scandal is taking its toll on the economy.

Prime Minister Recep Tayyip Erdogan was forced to reshuffle his government after three ministers’ sons were among dozens of people detained in a vast police corruption and bribery investigation. The head of a state-owned bank was also arrested.

Erdogan’s government has rejected the corruption allegations, pointing fingers instead at an alleged conspiracy to hurt his government ahead of local elections in March.

But the political instability is unnerving investors.

The Turkish lira reached a record 2.19 against the dollar and 2.97 against the euro on Monday. It has slid more than seven per cent against the dollar since the scandal began on Dec. 17.